Årsredovisning 2025

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RECEIVABLES AND ALLOWANCE FOR EXPECTED CREDIT LOSSES
Receivables are recorded at the invoice amount, which represents the fair value of the consideration received or receivable.
In addition to individually assess overdue customer balances for expected credit losses, the Company also calculates an allowance that
reflects the expected credit losses on receivables considering both historical experience and forward-looking assumptions. The method
calculates the expected credit loss for a group of customers by using the customer groups’average short-term default rates based on
officially published credit ratings and the Company’shistorical experience. These default rates are considered the Company’s best
estimate of the customer’sability to pay. The Company regularly reassesses the customer groups and the applied customer group’s
default rates by using its best judgment when considering changes in customer’scredit ratings, customer’shistorical payments and loss
experience, current market and economic conditions and the Company’sexpectations of future market and economic conditions.
There can be no assurance that the amount ultimately realized for receivables will not be materially different from that assumed in the
calculation of the allowance for expected credit losses.
INVENTORIES
The cost of inventories is computed according to the first-in first-out method (FIFO). Cost includes the cost of materials, direct labor and
the applicable share of manufacturing overhead. Inventories are evaluated based on individual or, in some cases, groups of inventory
items. Reserves are established to reduce the value of inventories to the lower of cost or net realizable value. Net realizable value is the
estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.
Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company calculates
provisions for excess and obsolete inventories based on the number of months of inventories on hand compared to anticipated sales or
usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be
no assurance that the amount ultimately realized for inventories will not be materially different from that assumed in the calculation of
the reserves.
PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipment is recorded at historical cost. Construction in progress generally involves short-term projects for which
capitalized interest is not significant. The Company provides for depreciation of property, plant and equipment computed under the
straight-line method over the assets’estimated useful lives, or in the case of leasehold improvements over the shorter of the useful life
or the lease term. Amortization on finance leases is recognized with depreciation expense in the Consolidated Statements of Income
over the shorter of the assets’expected life or the lease contract term. Repairs and maintenance are expensed as incurred.
LEASES
In accordance with ASC 842, Leases, the Company recognizes contracts that is, or contains, a lease when the contract conveys the
right to control the use of a physically identified asset for a period of time in exchange for consideration in the balance sheet as a right-
of-use asset and lease liability. The Company recognizes a right-of-use asset and a lease liability at lease commencement. The lease
liability for both finance and operating leases is measured at the present value of the remaining lease payments, discounted at the
implicit interest rate in the lease and if it is not readily determinable, the Company uses its incremental borrowing rate. The right-of-use
asset (ROU) for finance and operating leases is initially measured at the sum of the initial lease liability plus initial direct costs plus
prepaid lease payments minus lease incentives received. Lease payments include undiscounted fixed payments plus optional
payments that are reasonably certain to be owed. Lease payments do not include variable lease payments other than those that
depend on an index or rate. Variable lease payments that depend on an index or a rate are included in the calculation of lease
payments and in the measurement of the lease liability.
If the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate as the discount rate. The
Company uses its best judgment when determining the incremental borrowing rate, which is the rate of interest that the Company would
have to pay to borrow on a collateralized basis over a similar term to the lease payments in a similar currency.
The Company has elected the practical expedient of not separating lease components from non-lease components for all its classes of
underlying assets. The Company has also elected to recognize the lease payments for short-term leases in its consolidated statement
of income on a straight-line basis over the lease term and recognize the variable lease payments in the period in which the obligation
for those payments is incurred.
Finance lease right-of-use assets are presented together with other property, plant and equipment assets and finance lease liabilities
are presented together with other current and non-current liabilities in the Consolidated Balance Sheets. Finance leases were not
material as of December 31, 2025 or December 31, 2024.
For further details on the Company’sleases, see Note 3.

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LONG-LIVED ASSET IMPAIRMENT
The Company evaluates the carrying value and useful lives of long-lived assets, other than goodwill and intangible assets, when
indications of impairment are evident, or it is likely that the useful lives have decreased, in which case the Company depreciates the
assets over the remaining useful lives. Impairment testing is primarily done by using the cash flow method based on undiscounted
future cash flows. Estimated undiscounted cash flows for a long-lived asset being evaluated for recoverability are compared with the
respective carrying amount of that asset. If the estimated undiscounted cash flows exceed the carrying amount of the assets, the
carrying amounts of the long-lived asset are considered recoverable, and an impairment should not be recorded. However, if the
carrying amount of a group of assets exceeds the undiscounted cash flows, an entity must then measure the long-lived assets’ fair
value to determine whether an impairment loss should be recognized, generally using a discounted cash flow model. Generally, the
lowest level of cash flows for impairment assessment is customer platform level.
GOODWILL AND INTANGIBLE ASSETS
Goodwill represents the excess of the fair value of consideration transferred over the fair value of net assets of businesses acquired.
Goodwill is not amortized but subject to at least an annual review for impairment. Other definite-lived intangible assets, principally
related to acquired technology, are amortized over their useful lives which range from 3 to 25 years.
The Company performs its annual impairment testing in the fourth quarter of each year. Impairment testing is required more often than
annually if an event or circumstance indicates that an impairment, or decline in value, may have occurred. The Company uses either a
qualitative assessment or a quantitative calculation for its impairment testing. The qualitative assessment permits the Company to
assess whether it is more than likely than not (i.e., a likelihood of greater than 50%) that goodwill is impaired. If the Company concludes
based on the qualitative assessment that it is not more likely than not that the fair value of goodwill is less than its carrying amount, it
would not have to quantitatively determine the asset’sfair value. The Company also considers external factors that could affect the
significant inputs used to determine fair value.
In 2025, the Company performed a quantitative impairment test by calculating the fair value of its goodwill. The estimated fair market
value of goodwill is determined by the discounted cash flow method.
There were no impairments of goodwill from 2023 through 2025.
WARRANTIES AND RECALLS
The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate
costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety
concern. Product recall costs are estimated based on the expected cost of replacing the product and the customers' cost of carrying out
the recall, which is affected by the number of vehicles subject to recall and the cost of labor and materials to remove and replace the
defective product. Insurance receivables, related to recall issues covered by the insurance, are included within other current and non-
current assets in the Consolidated Balance Sheets. Provisions for warranty claims are estimated based on prior experience, likely
changes in performance of newer products and the mix and volume of products sold. The provisions are recorded on an accrual basis.
For further details, see Note 14.
RESTRUCTURING PROVISIONS
The Company defines restructuring expense to include costs directly associated with rightsizing, exit or disposal activities. Estimates of
restructuring charges are based on information available at the time such charges are recorded. In general, management anticipates
that restructuring activities will be completed within a timeframe such that significant changes to the exit plan are not likely. Due to
inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts
initially estimated. For further details, see Note 13.
PENSION OBLIGATIONS
The Company provides for both defined contribution plans and defined benefit plans. A defined contribution plan generally specifies the
periodic amount that the employer must contribute to the plan and how that amount will be allocated to the eligible employees who
perform services during the same period. A defined benefit pension plan is one that contains pension benefit formulas, which generally
determine the amount of pension benefits that each employee will receive for services performed during a specified period of
employment.
The amount recognized as a defined benefit liability is the net total of projected benefit obligation (PBO) minus the fair value of plan
assets (if any). For further details, see Note 20.

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CONTINGENT LIABILITIES
Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of
matters that arise in the ordinary course of its business activities with respect to commercial, product liability or other matters (see Note
14). The Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably
available against insurable risks. The Company records liabilities for claims, lawsuits and proceedings, when they are probable and it is
possible to reasonably estimate the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency
are expensed as such costs are incurred.
The Company believes, based on currently available information, that the resolution of outstanding matters, other than any antitrust
related matters described in Note 19 after taking into account recorded liabilities and available insurance coverage, should not have a
material effect on the Company’sfinancial position or results of operations. However, due to the inherent uncertainty associated with
such matters, there can be no assurance that the final outcomes of these matters will not be materially different from current estimates.
TRANSLATION OF NON-U.S. SUBSIDIARIES
The assets and liabilities of subsidiaries with functional currency other than U.S. dollars are translated into U.S. dollars based on the
current exchange rate prevailing at each balance sheet date and any resulting translation adjustments are included in accumulated
other comprehensive loss. The assets and liabilities of foreign subsidiaries whose local currency is not their functional currency are
remeasured from their local currency to their functional currency and then translated to U.S. dollars. Revenues and expenses are
translated into U.S. dollars using the average exchange rates prevailing for each period presented.
RECEIVABLES AND LIABILITIES IN NON-FUNCTIONAL CURRENCIES
Receivables and liabilities not denominated in functional currencies are converted at year-end exchange rates. Net transaction (losses)
gains, reflected in the Consolidated Statements of Income, amounted to $(27) million in 2025, $1 million in 2024 and $(30) million in
2023, and are recorded in operating income if they relate to operational receivables and liabilities or are recorded in other non-operating
items, net if they relate to financial receivables and liabilities.
NEW ACCOUNTING STANDARDS
Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”)in the form of accounting standards updates
(“ASUs”)to the FASB’sAccounting Standards Codification (ASC). The Company considers the applicability and impact of all ASUs.
ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the
Company’sconsolidated financial statements.
Adoption of New Accounting Standards
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures , to enhance
the transparency and decision usefulness of income tax disclosures as well as improve the effectiveness of income tax disclosures. The
amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate
reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The amendments in this
update also require that all entities disclose on an annual basis certain detailed information about income taxes paid. The amendments
in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures
by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid
disaggregated by jurisdiction. The amendments allow investors to better assess, in their capital allocation decisions, how an entity’s
worldwide operations and related tax risks and tax planning and operational opportunities affect its income tax rate and prospects for
future cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2024. Early adoption is
permitted. The amendments in ASU 2023-09 updated should be applied on a prospective basis. Retrospective application is permitted.
The Company adopted ASU 2023-09 prospectively as of December 31, 2025. The adoption of ASU 2023-09 resulted in incremental
disclosures in the Company's financial statements.
In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832), Accounting for Government Grants Received by
Business Entities , to improve GAAP by establishing authoritative guidance on the accounting for government grants received by a
business entity. The amendments in ASU 2025-10 establish the accounting for a government grant received by a business entity,
including guidance for (1) a grant related to an asset and (2) a grant related to income. The amendments in ASU 2025-10 require that a
government grant received by a business entity should not be recognized until: 1) It is probable that (a) a business entity will comply
with the conditions attached to the grant and (b) the grant will be received. 2) A business entity meets the recognition guidance for a
grant related to an asset or a grant related to income. The amendments in ASU 2025-10 also require that a business entity provide
disclosures, including the nature of the government grant received, the accounting policies used to account for the grant, and significant
terms and condition of the grant. The amendments in ASU 2025-10 are effective for annual reporting periods beginning after December
15, 2028, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The amendments in ASU
2025-10 should be applied using one of the following transition approaches: 1) A modified prospective approach to both: (a)
Government grants that are entered into on or after the effective date (b) Government grants  that are not complete as of the effective
date. 2) A modified retrospective approach to both: (a) Government grants that are entered into on or after the beginning of the earliest
period presented (b) Government grants that are not complete as of the beginning of the earliest period presented. 3) A retrospective
approach to all government grants through a cumulative-effect adjustment to the opening balance of retained earnings as of the
beginning of the earliest period presented. The Company adopted ASU 2025-10 using the modified retrospective as of December 31,
2025. No material adjustments were required as a result of the retrospective adoption of ASU 2025-10.

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Accounting Standards Issued But Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation
Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses , to improve financial reporting by requiring additional
information about specific expense categories in the notes to the financial statements at interim and annual reporting periods. The
amendments in ASU 2024-03 do not change or remove current expense disclosure requirements. The amendments require that at
each interim and annual reporting period an entity should disclose the amounts of (a) purchase of inventory, (b) employee
compensation, (c) depreciation and (d) intangible asset amortization included in each relevant expense caption. The amendments in
ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning
after December 15, 2027. Early adoption is permitted. The amendments in ASU 2024-03 should be applied either (1) prospectively to
financial statements issued for reporting periods after the effective date of ASU 2024-03 or (2) retrospectively to any or all periods
presented in the financial statements. The adoption of  ASU 2024-03 is expected to result in incremental disclosures in the Company’s
financial statements. The Company will adopt the amendments in ASU 2024-03 prospectively upon the effective date.
In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Targeted
improvements to the Accounting for Internal-Use Software, to modernize the accounting for software costs that are accounted for under
Subtopic 350-40. ASU 2025-06 removes all references to prescriptive and sequential software development stages throughout
Subtopic 350-40. Therefore, an entity is required to start capitalizing software costs when both of the following occur: 1) Management
has authorized and committed to funding the software project and 2) It is probable that the project will be completed, and the software
will be used to perform the function intended. The amendments in ASU 2025-06 are effective for annual reporting periods beginning
after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the
beginning of an annual reporting period. The amendments in ASU 2025-06 permits entities to use either 1) a prospective transition
approach, 2) a modified transition approach, or 3) a retrospective transition approach. The Company is currently assessing the impact
that ASU 2025-06 will have on its financial statements and expects to adopt the amendments in ASU 2025-06 using the prospective
transition approach. The Company expects that its capitalization of internal-use software costs will not change significantly under the
amendments in ASU 2025-06.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), Narrow-Scope Improvements, to provide clarity
about the current requirements, rather than evaluate whether to expand or reduce interim disclosure requirements. The amendments in
ASU  2025-11 result in a comprehensive list of interim disclosures that are required by GAAP. The amendments in ASU 2025-11 also
include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a
material impact on the entity. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting
periods beginning after December 15, 2027. Early adoption is permitted. The amendments in ASU 2025-11 can be applied either (1)
prospectively or (2) retrospectively to any or all prior periods presented in the financial statements. The Company expects to early adopt
ASU 2025-11 prospectively to all prior periods presented in the first quarter of 2026. The Company expects that the adoption of ASU
2025-11 will not have a significant impact on its interim disclosures.
3. Leases
The Company has operating leases for offices, manufacturing and research buildings, machinery, cars, data processing and other
equipment. The Company’sleases have remaining lease terms of 1 to 43 years, some of which include options to extend the leases for
up to 25 years, and some of which include options to terminate the leases within one year.
As of December 31, 2025, the Company has no additional material operating leases that have not yet commenced.
The following tables provide information about the Company’soperating leases. The Company has not identified any material finance
leases as of December 31, 2025; therefore, the finance lease components have not been disclosed in the tables below.
Lease cost
(Dollars in millions) 2025 2024 2023
Operating lease cost $ 48 $ 47 $ 54
Short-term lease cost 7 6 8
Variable lease cost 7 6 5
Sublease income (1) (1) (1)
Total lease cost $ 62 $ 58 $ 66
Other information
Year ended or as of
December 31,
(Dollars in millions) 2025 2024
Cash paid for amounts included in the measurement of operating lease liabilities $ 49 $ 45
Right-of-use assets obtained in exchange for new operating lease liabilities 46 27
Weighted-average remaining lease term - operating leases 8.7 years 8.9 years
Weighted-average discount rate - operating leases 3.2% 3.3%

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Maturities of operating lease liabilities (undiscounted cash flows) are as follows:
(Dollars in millions) Maturities
2026 $ 41
2027 31
2028 21
2029 15
2030 10
Thereafter 72
Total operating lease payments 189
Less imputed interest (24)
Total operating lease liabilities $ 165
4. Fair Value Measurements
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
The carrying value of cash and cash equivalents, accounts receivable, accounts payable, other current liabilities and short-term debt
approximate their fair value because of the short-term maturity of these instruments.
The Company uses derivative financial instruments, “derivatives”,as part of its debt management to mitigate the market risk that occurs
from its exposure to changes in interest and foreign exchange rates. The Company does not enter into derivatives for trading or other
speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall
financial policy. All derivatives are recognized in the consolidated financial statements at fair value. Certain derivatives are from time to
time designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives
hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does
not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that
occurs from changes in interest and foreign exchange rates.
The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability.
Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an
established market and the characteristics specific to the transaction. Instruments with readily active quoted prices or for which fair
value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of
judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing
observability and a higher degree of judgment utilized in measuring fair value.
Under U.S. GAAP, there is a disclosure framework hierarchy associated with the level of pricing observability utilized in measuring
assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows:
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the
reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently,
and items that are fair valued using other financial instruments, the parameters of which can be directly observed.
Level 3 - Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way
markets and are measured using management’sbest estimate of fair value, where the inputs into the determination of fair value require
significant management judgment or estimation.
The Company’sderivatives are all classified as Level 2 of the fair value hierarchy.
The tables below present information about the Company’sfinancial assets and liabilities measured at fair value on a recurring basis as
of December 31, 2025 and December 31, 2024. The carrying value is the same as the fair value as these instruments are recognized in
the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (ISDA agreements)
with all derivative counterparties, the fair values in the tables below and in the Consolidated Balance Sheets at December 31, 2025 and
December 31, 2024 have been presented on a gross basis. According to the close-out netting agreements, transaction amounts
payable to a counterparty on the same date and in the same currency can be netted. The amounts subject to netting agreements that
the Company choose not to offset are presented below.
DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS
There were no derivatives designated as hedging instruments as of December 31, 2025 and December 31, 2024.

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DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
Derivatives not designated as hedging instruments relate to economic hedges and are marked to market with all amounts recognized in
the Consolidated Statements of Income. The derivatives not designated as hedging instruments outstanding at December 31, 2025 and
December 31, 2024 were foreign exchange swaps.
For 2025, the Company recognized a gain of $8 million in other non-operating items, net for derivative instruments not designated as
hedging instruments. For 2024, the Company recognized a loss of $27 million. For 2023, the Company recognized a loss of $2 million.
The realized part of the losses referred to above are reported under financing activities in the statement of cash flows . For 2025 the
gains and losses, net recognized as interest expense were a loss of $5 million. For 2024 and 2023, the gains and losses, net
recognized as interest expense were immaterial.
DECEMBER 31, 2025 DECEMBER 31, 2024
Fair Value Measurements Fair Value Measurements
Derivative asset Derivative liability Derivative asset Derivative liability
Nominal (Other current (Other current Nominal (Other current (Other current
(Dollars in millions) volume assets) liabilities) volume assets) liabilities)
DERIVATIVES NOT DESIGNATED
AS HEDGING INSTRUMENTS
Foreign exchange swaps, less
than 6 months $ 3,294 1) $ 12 2) $ 24 3) $ 2,916 4) $ 22 5) $ 42 6)
TOTAL DERIVATIVES NOT
DESIGNATED AS HEDGING
INSTRUMENTS $ 3,294 $ 12 $ 24 $ 2,916 $ 22 $ 42
1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $3,294 million.
2) Net amount after deducting for offsetting swaps under ISDA agreements is $12 million.
3) Net amount after deducting for offsetting swaps under ISDA agreements is $24 million.
4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,916 million.
5) Net amount after deducting for offsetting swaps under ISDA agreements is $22 million.
6) Net amount after deducting for offsetting swaps under ISDA agreements is $42 million.
FAIR VALUE OF DEBT
The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or
for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current
borrowing rates for similar types of financing. The Company has determined that each of these fair value measurements of debt reside
within Level 2 of the fair value hierarchy.
During the fourth quarter of 2025, the Company issued a 5-year €300 million green Eurobond. During the first quarter of 2024 and first
quarter of 2023, the Company issued its first green Eurobonds, of €500 million each.
The fair value and carrying value of debt are summarized in the table below.
DECEMBER 31, 2025 DECEMBER 31, 2024
(Dollars in millions)
CARRYING
VALUE1)
FAIR
VALUE
CARRYING
VALUE1)
FAIR
VALUE
LONG-TERM DEBT
Bonds $ 1,715 $ 1,736 $ 1,512 $ 1,527
Loans 17 17 10 10
2 2 0 0
TOTAL $ 1,734 $ 1,755 $ 1,522 $ 1,537
SHORT-TERM DEBT
Short-term portion of long-term debt $ 285 $ 287 $ 273 $ 275
Overdrafts and other short-term debt 134 134 114 114
TOTAL $ 419 $ 421 $ 387 $ 389
1) Debt as reported in balance sheet.

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ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A NON-RECURRING BASIS
In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its
balance sheet that are measured at fair value on a nonrecurring basis including certain long-lived assets, including equity method
investments, goodwill and other intangible assets, typically as it relates to impairment.
The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on
Company-specific inputs and the Company’sassumptions about the use of the assets and settlements of liabilities, as observable
inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair
value hierarchy. To determine the fair value of long-lived assets as of the reporting date, the Company utilizes the projected cash flows
expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets.
For the period 2023 to 2025, the Company did not record any material impairment charges on its long-lived assets for its continuing
operations.
5. Income Taxes
INCOME BEFORE INCOME TAXES  (Dollars in millions) 2025 2024 2023
U.S. $ (95) $ (51) $ 29
Non-U.S. 1,081 926 583
Total $ 986 $ 875 $ 612
PROVISION (BENEFIT) FOR INCOME TAXES (Dollars in millions) 2025 2024 2023
Current
U.S. federal $ 6 $ (6) $ 19
Non-U.S. 256 260 210
U.S. state and local 1 3 3
Deferred
U.S. federal (15) (11) (7)
Non-U.S. 5 (16) (101)
U.S. state and local (3) (3) (1)
Total income tax expense $ 250 $ 227 $ 123

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EFFECTIVE INCOME TAX RATE (AFTER ADOPTION OF ASU 2023-09)
(Dollars in millions) YEAR ENDED DECEMBER 31, 2025
US Federal Statutory Tax Rate $ 207 21.0%
State and Local Income Taxes, Net of Federal Income Tax Effect (1) (0.1%)
Effect of Changes in Tax Laws or Rates Enacted in the Current Period 0 0.0%
Effect of Cross Border Tax Laws
Global Intangible Low Taxed Income 14 1.4%
Tax Credits (7) (0.7%)
Changes in Valuation Allowances 0 0.0%
Non-taxable or Non-deductible items 1 0.1%
Other Domestic Federal Tax Items 0 0.0%
Foreign Tax Effects
China
Statutory tax rate difference between China and United States 11 1.1%
Withholding Taxes 25 2.5%
Changes in Valuation Allowances 1 0.1%
Other (4) (0.4%)
Germany
Changes in Valuation Allowances (13) (1.3%)
Other (1) (0.1%)
India
Changes in Valuation Allowances (2) (0.2%)
Settlement of Tax Audits 10 1.0%
Other 7 0.7%
Mexico
Other 19 1.9%
Sweden
Foreign Tax Credit (23) (2.3%)
Other (4) (0.4%)
Turkey
Other Deferred Tax Adjustments (12) (1.2%)
Other 4 0.4%
Other Foreign Jurisdictions
Enacted changes in tax laws or rates 2 0.2%
Change in Valuation Allowances (3) (0.3%)
Other Adjustments 21 2.2%
Worldwide Changes in unrecognized tax benefits (2) (0.2%)
Other Adjustments 0 0.0%
Total 250 25.4%
State and local income taxes in Alabama, Texas, Tennessee and Indiana comprise the majority of the state and local income taxes, net
of federal effect category.
EFFECTIVE INCOME TAX RATE (PRIOR TO ADOPTION OF ASU 2023-09) (%) 2024 2023
U.S. federal income tax rate 21.0 % 21.0 %
Non-Deductible Expenses 0.9 1.8
Foreign tax rate variances 2.2 4.6
Tax credits (2.1) (3.9)
Change in Valuation Allowances 0.5 11.6
Changes in tax reserves (2.1) 2.7
Provision to Return (1.5) (0.2)
Earnings of equity investments (0.2) (0.2)
Withholding taxes 5.6 5.2
State taxes, net of federal benefit 0.0 0.3
Tax Audits (0.5) 0.0
Other Deferred Tax Adjustments1) 0.0 (26.7)
U.S. FDII Deduction 0.0 (0.4)
U.S. GILTI Tax 1.9 3.4
Impact of Translation Rates 0.6 1.1
Other, net (0.3) (0.2)
Effective income tax rate 26.0 % 20.1 %
1) Deferred tax asset recognized in 2023 due to the transfer of certain assets and operations as part of the Company's restructuring activities.

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The following table summarizes the Company’sincome tax payments net of tax refunds by jurisdiction:
INCOME TAXES PAID (Dollars in millions) 2025 2024 2023
US Federal $ (13)
US State and Local 4
Foreign:
China 90
India 21
Japan 23
Korea 13
Mexico 24
Romania 15
Thailand 34
Other1) 19
Foreign Subtotal 239
Total cash paid for income taxes (net of refunds) $ 230
Total cash paid for income taxes (Prior to ASU 2023-09) $ 207 $ 192
1) Includes jurisdictions below the threshold for the period presented.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes. On December 31, 2025, the Company had net operating
loss carryforwards (NOL’s)of approximately $329 million, of which approximately $311 million have no expiration date. The remaining
losses expire on various dates through 2035.
Valuation allowances have been established which partially offset the related deferred assets. Such allowances are primarily provided
against NOL’sof companies that have perennially incurred losses, as well as the NOL’sof companies that are start-up operations and
have not established a pattern of profitability. The Company assesses all available evidence, both positive and negative, to determine
the amount of any required valuation allowance. During 2024, the Company recorded valuation allowances against deferred tax assets
of tax losses in certain companies and a partial valuation allowance against the deferred tax asset recognized due to the transfer of
certain assets and operations as part of the Company’srestructuring activities, on the basis of management’sassessment of the
amount of the related deferred tax assets that are not more likely than not to be realized.
The foreign tax rate variance reflects the fact that approximately two-thirds of the Company’snon-U.S. pre-tax income is generated by
business operations located in tax jurisdictions where the tax rate is between 20-30%. The tax rate from quarter to quarter and from
year to year is also impacted by the mix of earnings and tax rates in various jurisdictions compared to the same periods or prior years.
The Company has reserves for income taxes that may become payable in future periods as a result of tax audits. These reserves
represent the Company’s best estimate of the potential liability for tax exposures. Inherent uncertainties exist in estimates of tax
exposures due to changes in tax law, both legislated and concluded through the various jurisdictions’court systems. The Company files
income tax returns in the United States federal jurisdiction, and various states and non-U.S. jurisdictions.
The Company recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax
authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized
upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Company’stax returns that do not meet these
recognition and measurement standards. At any given time, the Company is undergoing tax audits in several tax jurisdictions, covering
multiple years. The Company is no longer subject to income tax examination by the U.S. Federal tax authorities for years prior to 2022.
With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S.
tax authorities for years before 2016. The Company is undergoing tax audits in several non-U.S. jurisdictions and several U.S. state
jurisdictions, covering multiple years. As of December 31, 2025, as a result of those tax examinations, the Company is not aware of any
proposed income tax adjustments that would have a material impact on the Company’sfinancial statements, however, other audits
could result in additional increases or decreases to the unrecognized tax benefits in some future period or periods.
The following table summarizes the activity related to the Company’sunrecognized tax benefits.
UNRECOGNIZED TAX BENEFITS (Dollars in millions) 2025 2024 2023
Unrecognized tax benefits at beginning of year $ 35 $ 83 $ 67
Increases as a result of tax positions taken during a prior period 1 0 8
Increases as a result of tax positions taken during the current period 8 4 7
Decreases as a result of tax positions taken during a prior period 0 (6) 0
Decreases relating to settlements with taxing authorities (4) (6) 0
Decreases resulting from the lapse of the applicable statute of limitations (4) (39) 0
Translation Difference 0 (1) 1
Total unrecognized tax benefits at end of year $ 36 $ 35 $ 83

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The Company recognizes interest and potential penalties accrued related to unrecognized tax benefits in tax expense. As of December
31, 2024, the Company recorded $43 million of taxes payable for unrecognized tax benefits, including $11 million accrued for interest
and penalties. In addition, $3 million of unrecognized tax benefits reported above are offset by valuation allowances. During 2025, the
Company recorded a net increase of $14 million to income tax reserves for unrecognized tax benefits related to tax positions taken in
current year. Also, during 2025, the Company recorded a net decrease of $15 million to income tax reserves for unrecognized tax
benefits due to settlement of audits and expiration of statutes of limitations.
As of December 31, 2025, the Company has recorded $42 million of taxes payable for unrecognized tax benefits, including $9 million
accrued for interest and penalties. In addition, $3 million of unrecognized tax benefits reported above are offset by valuation
allowances. Of the total unrecognized tax benefits of $42 million recorded as taxes payable at December 31, 2025, $6 million is
classified as current income tax payable, and $36 million is classified as non-current tax payable included in Other Non-Current
Liabilities on the Consolidated Balance Sheets. Substantially all of these reserves would impact the effective tax rate if released into
income.
The tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities were as
follows.
DEFERRED TAXES (Dollars in millions) December 31,
2025 2024 2023
Assets
Provisions $ 114 $ 112 $ 126
Costs capitalized for tax 110 85 57
Other Deferred Tax Asset1) 171 158 160
Property, plant and equipment 24 30 11
Retirement Plans 48 39 40
Tax receivables, principally NOL’s 93 99 133
Deferred tax assets before allowances 560 523 527
Valuation allowances (109) (126) (129)
Total 451 397 398
Liabilities
Distribution taxes (5) (3) (3)
Other 0 0 (1)
Total (5) (3) (4)
Net deferred tax asset $ 446 $ 394 $ 394
1) Deferred tax asset recognized in 2023 due to the transfer of certain assets and operations as part of the Company’srestructuring activities,
and is partially offset by the increased valuation allowances.
The following table summarizes the activity related to the Company’svaluation allowances (dollars in millions):
VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS (Dollars in millions) December 31,
2025 2024 2023
Allowances at beginning of year $ 126 $ 129 $ 46
Benefits reserved current year 6 11 81
Benefits recognized current year1) (34) (6) (2)
Translation difference 11 (8) 4
Allowances at end of year $ 109 $ 126 $ 129
1) Benefits reserved in 2023 include the partial reserve against deferred tax assets recognized in 2023 due to the transfer of certain assets and
operations as part of the Company's restructuring activities.
As of December 31, 2025, the Company did not record U.S. income taxes on undistributed earnings in some foreign subsidiaries
because those earnings were indefinitely reinvested in the operation of those subsidiaries. Most of these undistributed earnings are not
subject to withholding taxes upon distribution to intermediate holding companies. However, when appropriate, the Company provides
for the cost of such distribution taxes. Determining the unrecognized deferred tax liability on those unremitted earnings is not
practicable because of the complexity of the hypothetical calculation and the inherent uncertainty regarding the timing and manner of
any potential future repatriation. If such earnings were to be distributed, the Company could be subject to additional U.S. federal and
state income taxes, foreign withholding taxes, and other tax consequences.

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6. Receivables
(Dollars in millions) December 31,
2025 2024 2023
Receivables $ 2,250 $ 2,003 $ 2,206
Allowance for credit losses at beginning of year (10) (8) (10)
Reversal of (addition to) allowance (6) (2) (2)
Write-off against allowance 2 0 3
Translation difference (1) 0 (0)
Allowance for credit losses at end of year (14) (10) (8)
Total receivables, net of allowance $ 2,236 $ 1,993 $ 2,198
7. Inventories
(Dollars in millions) December 31,
2025 2024 2023
Raw material $ 481 $ 418 $ 457
Work in progress 293 295 347
Finished products 304 290 296
Inventories gross 1,078 1,003 1,100
Inventory reserve at beginning of year (82) (89) (91)
Change in reserve, net 2 1 3
Translation difference (6) 5 (0)
Inventory reserve at end of year (86) (82) (89)
Total inventories, net of reserve $ 992 $ 921 $ 1,012
8. Investments and Other Non-Current Assets
(Dollars in millions) December 31,
2025 2024
Equity method investments $ 16 $ 13
Deferred tax assets 461 412
Income tax receivables 17 19
Insurance receivables 6 44
Other non-current assets 68 60
Total other non-current assets $ 568 $ 548
As of December 31, 2025 and 2024, the Company had one equity method investment. The Company owns 49% of Autoliv-Hirotako
Safety Sdn, Bhd (parent and subsidiaries) in Malaysia which it currently does not control, but in which it exercises significant influence
over operations and financial position.
9. Property, Plant and Equipment
(Dollars in millions) December 31,
2025 2024 Estimated life
Land and land improvements $ 131 $ 127 n/a to 15
Buildings 1,174 1,038 20-40
Machinery and equipment 5,090 4,539 3-12
Construction in progress 527 629 n/a
Property, plant and equipment 6,922 6,334
Less accumulated depreciation (4,506) (4,095)
Net of depreciation $ 2,417 $ 2,239
DEPRECIATION INCLUDED IN (Dollars in millions) 2025 2024 2023
Cost of sales $ 365 $ 347 $ 340
Selling, general and administrative expenses 15 13 12
Research, development and engineering expenses, net 25 26 24
Total $ 405 $ 385 $ 376
No significant fixed asset impairments related to the Company’soperations were recognized during 2025, 2024 or 2023.
The net book value of machinery and equipment and buildings and land under finance lease contracts recorded at December 31, 2025
and December 31, 2024 and included in the table above were immaterial. The amortization expense related to finance leases is
included with depreciation expenses disclosed in the table above.

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10. Goodwill and Intangible Assets
December31,
GOODWILL (Dollars in millions) 2025 2024
Carrying amount at beginning of year $ 1,368 $ 1,378
Translation differences 11 (10)
Carrying amount at end of year $ 1,379 $ 1,368
Approximately $1.2 billion of the Company’sgoodwill is associated with the 1997 merger of Autoliv AB and the Automotive Safety
Products Division of Morton International, Inc. No goodwill impairment charges were recognized during 2025, 2024 or 2023.
December 31,
AMORTIZABLE INTANGIBLES (Dollars in millions) 2025 2024
Gross carrying amount $ 401 $ 386
Accumulated amortization (393) (379)
Carrying value $ 7 $ 7
At December 31, 2025, intangible assets subject to amortization mainly relate to acquired technology. No significant impairments of
intangible assets were recognized during 2025, 2024 or 2023.
Amortization expense related to intangible assets for the years 2025, 2024 and 2023 were immaterial and estimated future amortization
expense is immaterial for all future periods.
11. Supplier Finance Program Obligations
The Company has an agreement with an external payment service provider to facilitate the payments to certain suppliers. The
outstanding obligations confirmed towards the external payment service provider are recorded in Accounts Payable in the Consolidated
Balance Sheet until payment has been effected. The Company has undertaken to make sure the payment is effected on the original
invoice maturity date. The average payment terms during 2025 was 116 days compared to 117 days during 2024.
The roll-forward of the Company's outstanding obligations confirmed as valid under its supplier finance program for the year ended
December 31, 2025 is as follows (dollars in millions):
As of December 31,
(Dollars in millions) 2025 2024
Confirmed obligations outstanding at beginning of the period $ 335 $ 345
Invoices confirmed during the period 1,671 1,536
Confirmed invoices paid during the period (1,641) (1,546)
Confirmed obligations outstanding at end of the period $ 365 $ 335
12. Accrued liabilities
December 31,
(Dollars in millions) 2025 2024
Employee-related liabilities $ 228 $ 203
Variable considerations to customers 242 185
Restructuring reserve 82 151
Product related liabilities 87 65
Other accrued liabilities 411 451
Total accrued liabilities $ 1,050 $ 1,056

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13. Restructuring
Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with employee
reductions and plant consolidations. Restructuring costs other than employee related costs are immaterial for all periods presented and
are included in the table below. The Company expects to finance restructuring programs over the next several years through cash
generated from its ongoing operations or through cash available under its existing credit facilities. The Company does not expect that
the execution of these programs will have an adverse impact on its liquidity position. The changes in the employee-related reserves in
the table below have been charged against Other income (expense), net in the Consolidated Statements of Income. The restructuring
reserve balance is included within Accrued liabilities in the Consolidated Balance Sheet (see Note 12).
December 31,
(Dollars in millions) 2025 2024 2023
Reserve at beginning of the period $ 151 $ 213 $ 32
Provision - charge 10 20 212
Provision - reversal (2) (2) (1)
Cash payments (91) (69) (35)
Translation difference 14 (11) 7
Reserve at end of the period $ 82 $ 151 $ 213
The restructuring charges in 2025 of $10 million mainly related to the global structural cost reduction program activities initiated in 2023
in Europe. The cash payments of $91 million in 2025 mainly related to restructuring activities in Europe. As of December 31, 2025, the
majority of the restructuring reserve balance was attributed to global structural cost reduction program activities in Europe. The
Company does not expect to recognize additional material restructuring charges during 2026 related to ongoing restructuring programs.
The main part of the remaining balance for the activities initiated in Europe in 2023 is expected to be concluded in 2026.
The restructuring charges in 2024 of $20 million mainly related to the global structural cost reduction program activities initiated in 2023
in Europe. The cash payments of $69 million in 2024 mainly related to restructuring activities in Europe.
The restructuring charges in 2023 of $212 million related to the global structural cost reduction program activities initiated in 2023,
primarily in Europe. Cash payments of $35 million in 2023 mainly related to restructuring activities in Europe.
14. Product Related Liabilities
Autoliv is exposed to product liability and warranty claims in the event that the Company’sproducts fail to perform as represented and
such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product
risks. Such reserves are related to product performance issues including recall, product liability and warranty issues. The reserve for
product related liabilities is included in accrued expenses on the Consolidated Balance Sheet. For further information, see Note 19.
The Company records liabilities for product related risks when probable claims are identified and when it is possible to reasonably
estimate costs. Changes in reserve for warranty claims are estimated based on prior experience, likely changes in performance of
newer products, and the mix and volume of the products sold. The changes in reserve are recorded on an accrual basis.
In 2025, the additions to the reserve mainly related to warranty related issues. Cash payments were also mainly related to warranty
related issues. None of these matters were individually material during 2025.
In 2024, the additions to the reserve mainly related to warranty related issues. The reversal of the reserve was related to certain recall
issues that were settled with a favorable outcome. Cash payments were related to warranty and recall related issues. None of these
matters were individually material during 2024.
In 2023, the change in reserve and cash payments mainly related to the Andrews litigation settlement with the reserve partly offset by
reversal of recall related issues.
The Company’s recall related issues as of December 31, 2025 are partly covered by insurance. Insurance receivables are included
within other current and non-current assets on the Consolidated Balance Sheet. As of December 31, 2025, the Company had total
insurance receivables related to recall issues of $14 million ($54 million as of December 31, 2024).
The table below summarizes the change in the balance sheet position of the product related liabilities (dollars in millions).
December 31,
(Dollars in millions) 2025 2024 2023
Reserve at beginning of the year $ 65 $ 96 $ 145
Addition to reserve 54 16 28
Reversal of preexisting reserve 0 (16) (3)
Cash payments (36) (30) (74)
Translation difference 3 (2) 0
Reserve at end of the year $ 87 $ 65 $ 96

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15. Debt and Credit Agreements
SHORT-TERM DEBT
On December 31, 2025 and 2024, total short-term debt was $419 million and 387 million, respectively. In 2014, the Company issued
long-term debt securities in a U.S. Private Placement. On December 31, 2025, the total short-term debt outstanding from the 2014
issuance was $285 million, with maturity in April 2026.
The Company’s subsidiaries have credit agreements, including but not limited to, overdraft facilities with several local banks. Total
available short-term facilities on December 31, 2025, excluding commercial paper facilities as described below, amounted to $601
million, of which approximately $112 million was utilized. The weighted average interest rate on total short-term debt outstanding on
December 31, 2025 and 2024, excluding the short-term portion of long-term debt, was 4% and 5%, respectively.
LONG-TERM DEBT
As of December 31, 2025 and 2024, total long-term debt was 1,734 million and 1,522 million, respectively.
In October 2025, the Company priced and issued a 5-year green bond for a total of €300 million in the Eurobond market. The bond
carries a coupon of 3.0% and matures in October 2030.
In February 2024, the Company priced and issued a 5.5-year green bond for a total of €500 million in the Eurobond market. The bond
carries a coupon of 3.625% and matures in August 2029.
In March 2023, the Company priced and issued a 5-year green bond for a total of €500 million in the Eurobond market. The bond
carries a coupon of 4.25% and matures in March 2028. 
In 2014, the Company issued long-term debt securities in a U.S. Private Placement. On December 31, 2025, the total long-term debt
outstanding from the 2014 issuance was $185 million aggregate principal amount of 15-year senior notes with an interest rate of 4.44%.
CREDIT FACILITIES
In July 2024, the Company entered into an $125 million bilateral revolving credit facility (Bilateral RCF) with substantially the same
terms as the RCF with the 11 banks (see below). On December 31, 2025, this facility was not utilized.
In May 2022, the Company refinanced its existing revolving credit facility (RCF) of $1,100 million. The facility was syndicated among 11
banks and matures in May 2029. The Company pays a commitment fee on the undrawn amount of 0.10%, representing 35% of the
applicable margin, which is 0.275% (given the Company’sratings of  “BBB+ from Fitch and “Baa1” from Moody’s).Borrowings under
the facility are unsecured. On December 31, 2025, this facility was not utilized.
The Company has a €3,000 million Euro Medium Term Note Program in place for being able to issue notes to be traded on the Global
Exchange Market of Euronext Dublin. On December 31, 2025, €1,300 million had been issued under this program (see long-term debt
above).
The Company has a $1.0 billion US commercial paper program and a SEK 7 billion (approx. $763 million) Swedish commercial paper
program. On December 31, 2025, there were no amounts outstanding under these respective facilities.
The Company is not subject to any financial covenants, i.e., performance related restrictions, in any of its significant long-term
borrowings or commitments.
CREDIT RISK
In the Company’sfinancial operations, credit risk arises in connection with cash deposits with banks and when entering into forward
exchange agreements, swap contracts or other financial instruments. In order to reduce this risk, deposits and financial instruments are
only entered with a limited number of banks up to a calculated risk amount of $250 million per bank for banks rated A- or above and up
to $50 million for banks rated BBB+. The policy of the Company is to work with banks that have a strong credit rating and that
participate in the Company’sfinancing. In addition to this, deposits of up to an aggregate amount of $2 billion can be placed in U.S. and
Swedish government paper and in certain AAA rated money market funds. On December 31, 2025, the Company had placed $267
million in money market funds.
The table below shows debt maturity as cash flow. For a description of hedging instruments used as part of debt management, see the
Financial Instruments section of Note 2 and Note 4.
DEBT PROFILE
Total
PRINCIPAL AMOUNT BY EXPECTED MATURITY
(dollars in millions) 2026 2027 2028 2029 2030 Thereafter
long-
term Total
Bonds $ 285 $ — $ 589 $ 774 $ 353 $ — $ 1,715 $ 2,000
Loans 122 9 4 4 — 2 19 141
Other short-term debt 12 — — — — — — 12
Total principal amount $ 419 $ 9 $ 593 $ 778 $ 353 $ 2 $ 1,734 $ 2,153

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16. Shareholders’ Equity
The number of shares outstanding as of December 31, 2025 was 74,705,356.
DIVIDENDS 2025 2024 2023
Cash dividend paid per share $ 3.12 $ 2.74 $ 2.66
Cash dividend declared per share $ 3.12 $ 2.74 $ 2.66
OTHER COMPREHENSIVE LOSS / ENDING BALANCE1) (Dollars in millions) 2025 2024
Cumulative translation adjustments $ (487) $ (629)
Net pension liability (31) (31)
Total (ending balance) $ (518) $ (659)
Deferred taxes on the pension liability $ 9 $ 10
1) The components of Other Comprehensive Loss are net of any related income tax effects.
In 2025, a cumulative translation gain of $11 million related to the sale of the Russian entity and a cumulative translation loss of $12
million related to the liquidation of the entities in Netherlands and Italy have been recycled and reported as part of the net change of
cumulative translation adjustment in the Comprehensive Income Statement and Equity Statement. In the Statement of Income these
gains and losses have been reported as part of Other income (expense), net. In 2024, a cumulative translation gain of $1 million related
to liquidated entities was recycled and reported as part of the net change of cumulative translation adjustment in the Comprehensive
income statement and Equity statement.
SHARE REPURCHASE PROGRAM
On June 4, 2025, the Company announced that its Board of Directors approved a new stock repurchase program that authorizes the
Company to repurchase up to $2.5 billion of common shares and operates from July 1, 2025 through December 31, 2029.
During 2025, 2024 and 2023 the Company repurchased and retired 3,141,947 shares, 5,052,938 shares and 3,671,252 shares for $351
million, $552 million and $352 million, respectively.
17. Supplemental Cash Flow Information
Payments for interest and income taxes were as follows:
(Dollars in millions) 2025 2024 2023
Interest $ 98 $ 104 $ 80
Income taxes 230 207 192
As of December 31, 2025, $104 million of the Company's capital expenditures for property, plant and equipment during 2025 was
included in Accounts Payable balance, and therefore represents a noncash investing activity.
18. Stock Incentive Plan
The Company maintains the Autoliv, Inc. 1997 Stock Incentive Plan, as amended (the “Stock Incentive Plan”),pursuant to which it has
granted to eligible employees and non-employee directors restricted stock units (RSUs) and performance shares (PSUs).
The fair value of the RSUs and PSUs is calculated as the grant date fair value of the shares expected to be issued. The RSUs and
PSUs granted in 2025, 2024 and 2023 entitle the grantee to receive dividend equivalents in the form of additional RSUs and PSUs
subject to the same vesting conditions as the underlying RSUs and PSUs. For the grants made during 2025, 2024 and 2023, the fair
value of a RSU and a PSU was calculated by using the closing stock price on the grant date and, with respect to a PSU, estimated
target performance. The grant date fair value for the RSUs and PSUs granted during 2025 was approximately $9 million and
approximately $10 million, respectively.
Pursuant to the Company’snon-employee director compensation policy effective May 1, 2024, the Company’snon-employee directors
receive an annual RSU grant having a grant date value equal to $162,500 and the Chairman of the Board of Directors also receives an
additional annual RSU grant having a grant date value equal to $90,000. All RSUs granted to non-employee directors vest in one
installment on the earlier of the next AGM or the first anniversary of the grant date, in each case subject to the grantee’s continued
service as a non-employee director on the vesting date with limited exceptions. The RSUs granted to the Company’s non-employee
directors entitle the grantee to receive dividend equivalents in the form of additional RSUs subject to the same vesting conditions as the
underlying RSUs. The grant date fair value for the RSUs granted in 2025 to the Company’snon-employee directors was approximately
$2 million.

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The source of the shares issued upon vesting of awards is generally from treasury shares. The Stock Incentive Plan provides for the
issuance of up to 9,585,055 common shares for awards. At December 31, 2025, 7,339,781 of these shares have been issued for
awards and 2,245,274 shares remain available for future grants.
All Stock Options (SOs) were granted for 10-year terms, had an exercise price equal to the fair market value per share of common
stock at the date of grant, and became exercisable after one year of continued employment following the grant date. As of December
31, 2025, all SOs have been exercised or expired.
The Company recorded approximately $20 million, $16 million and $14 million stock-based compensation expense related to RSUs and
PSUs for 2025, 2024 and 2023, respectively. The compensation expense is included in the same lines as cash compensation paid to
the same employees and nonemployees for all periods presented. The total compensation cost related to non-vested awards not yet
recognized is $19 million for RSUs and PSUs and the weighted average period over which this cost is expected to be recognized is
approximately 1.8 years. There are no remaining unrecognized compensation costs associated with SOs.
Information on the number of RSUs, PSUs and SOs related to the Stock Incentive Plan during the period of 2023 to 2025 is as follows.
RSUs 2025 2024 2023
Weighted average fair value at grant date $ 98.08 $ 112.16 $ 91.81
Outstanding at beginning of year 174,147 189,966 200,764
Granted 89,818 64,601 96,243
Shares issued (60,317) (75,068) (94,055)
Cancelled/Forfeited/Expired (8,128) (5,352) (12,986)
Outstanding at end of year 195,520 174,147 189,966
The aggregate intrinsic value for RSUs outstanding at December 31, 2025 was approximately $23 million.
PSUs 2025 2024 2023
Weighted average fair value at grant date $ 96.50 $ 109.41 $ 91.80
Outstanding at beginning of year 279,305 111,881 101,828
Change in performance conditions 139,208 147,022 18,211
Granted 111,998 79,712 93,962
Shares issued (84,848) (49,509) (26,331)
Cancelled/Forfeited/Expired (6,535) (9,801) (75,789)
Outstanding at end of year 439,127 279,305 111,881
The PSUs granted include assumptions regarding the ultimate number of shares that will be issued based on the probability of
achievement of the performance conditions. Changes in those assumptions result in changes in the estimated shares to be issued
which is reflected in the “Changein performance conditions”line above.
SOs
Number
of options
Weighted
average
exercise
price
Outstanding at December 31, 2022 31,111 $ 70.77
Exercised (15,537) 65.12
Cancelled/Forfeited/Expired (485) 58.63
Outstanding at December 31, 2023 15,089 76.97
Exercised (10,777) 76.53
Cancelled/Forfeited/Expired (915) 69.41
Outstanding at December 31, 2024 3,397 80.40
Exercised (2,881) 0.00
Cancelled/Forfeited/Expired (516) 0.00
Outstanding at December 31, 2025 0 $ 0.00
OPTIONS EXERCISABLE
At December 31, 2023 15,089 $ 76.97
At December 31, 2024 3,397 80.40
At December 31, 2025 0 0.00

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19. Contingent Liabilities
LEGAL PROCEEDINGS
Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of
matters that arise in the ordinary course of its business activities with respect to commercial, product liability, and other matters.
Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with
the exception of losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal
proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated
financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product
liability or other losses in the future.
ANTITRUST MATTERS
Authorities in several jurisdictions have conducted broad, and in some cases, long-running investigations of suspected anti-competitive
behavior among parts suppliers in the global automotive vehicle industry. These investigations included, but are not limited to, the
products that the Company sells. In addition to concluded matters, authorities of other countries, with significant light vehicle
manufacturing or sales may initiate similar investigations. As a result of the outcome of the European Commission investigation of anti-
competitive behavior among suppliers of occupant safety systems that the Company resolved in 2019 (the "EC investigation"), the
Company is subject to multiple subsequent civil disputes with non-governmental third parties stemming from the same facts and
circumstances underlying the EC investigation. The Company is involved in civil litigation in the UK and Germany with respect to
alleged anti-competitive behavior that occurred over a decade ago.
The trial associated with the lawsuit in the UK concluded and a ruling in the proceeding was in favor of the Company. On February 21,
2025, the United Kingdom Competition Appeal Tribunal unanimously dismissed plaintiffs' claims against the Company.
On October 31, 2024, BMW filed a complaint against the Company in Germany claiming damages of €63 million plus interest (for a total
claim of  approximately €95 million) related to the conduct at issue in the EC investigation (the "BMW Complaint"). BMW is one of two
European OEMs for which the Company pled guilty in 2017 in relation to the EC investigation. The Company has a period of six months
to respond to the complaint and is currently assessing the viability of the complaint. The Company has determined pursuant to ASC 450
that a loss is reasonably possible with respect to the BMW Complaint. However, the Company continues to evaluate this matter, no
accrual has been recorded, and the estimated range of potential loss is between €0 and €95 million. The Company cannot predict the
ultimate outcome of the BMW Complaint. This dispute could result in significant expenses as well as an unfavorable outcome that could
have a material adverse impact on our customer relationships, business prospects, reputation, operating results, cash flows or financial
condition, and our insurance would likely not mitigate such impact. The Company cannot predict the duration, scope, or ultimate
outcome of any such disputes.
PRODUCT WARRANTY, RECALLS AND INTELLECTUAL PROPERTY
Autoliv is exposed to various claims for damages and compensation if its products fail to perform as expected. Such claims can be
made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly.
Where a product (actually or allegedly) fails to perform as expected or is defective, the Company may face warranty and recall claims.
Where such (actual or alleged) failure or defect results, or is alleged to result, in bodily injury and/or property damage, the Company
may also face product liability and other claims. There can be no assurance that the Company will not experience material warranty,
recall or product (or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against
such claims. The Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own
practices regarding product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally
involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly
looking to their suppliers for contribution when faced with recalls and product liability claims. Government safety regulators may also
play a role in warranty and recall practices. Recall decisions regarding the Company’sproducts may require a significant amount of
judgment by us, our customers and safety regulators and are influenced by a variety of factors. Once a recall has been made, the cost
of a recall is also subject to a significant amount of judgment and discussions between the Company and its customers. A warranty,
recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the
Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their
products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may
attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did
not perform as represented by us or expected by the customer in either a warranty or a recall situation. Accordingly, the future costs of
warranty or recall claims by the customers may be material. However, the Company believes its established reserves are adequate.
Autoliv’swarranty reserves are based upon the Company’sbest estimates of amounts necessary to settle future and existing claims.
The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts
actually due related to these matters could differ materially from the Company’srecorded estimates.
In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also
conducted on a global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having
a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of
new orders, which may have a material impact on the Company’sresults of operations.

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The Company maintains a program of insurance, which may include commercial insurance, self-insurance, or a combination of both
approaches, for potential recall and product liability claims in amounts and on terms that it believes are reasonable and prudent based
on our prior claims experience. The Company’sinsurance policies generally include coverage of the costs of a recall, although costs
related to replacement parts are generally not covered. In addition, a number of the agreements entered into by the Company, including
the agreements related to the spin-off of Veoneer, require Autoliv to indemnify the other parties for certain claims. Autoliv cannot assure
that the level of coverage will be sufficient to cover every possible claim that can arise in our businesses or with respect to other
obligations, now or in the future, or that such coverage always will be available should we, now or in the future, wish to extend, increase
or otherwise adjust our insurance.
As noted in Note 14 above, as of December 31, 2025, the Company has accrued $87 million for total product related liabilities. The
majority of the total product liability accrual as of December 31, 2025, relates to recalls, which are partly covered by insurance.
Insurance receivables for such recall related liabilities total $14 million as of December 31, 2025.
Product Liability:
Autoliv and some of its subsidiaries have been named as one of several defendants in a consolidated class action lawsuit in a multi-
district litigation (In Re: ARC Airbag Inflators Products Liability Litigation MDL, No. 3051) in the Northern District of Georgia. The
plaintiffs in the multi-district litigation (the "ARC Inflator Class Action") brought claims for fraud, breach of warranty, and violations of
consumer protection and trade practices stemming from ARC inflators included in airbag modules that Autoliv or its subsidiaries
allegedly supplied after Autoliv acquired certain Delphi assets (the “Delphi Acquisition”)in December 2009. The Company denies these
allegations. Autoliv is not aware of any performance issues regarding ARC inflators included with its airbags at the directions of its
customers that it shipped following the Delphi Acquisition. The proceedings remain ongoing. The Company has determined pursuant to
ASC 450 that a loss is reasonably possible with respect to the ARC Inflator Class Action. However, the Company continues to evaluate
this matter, no accrual has been made, and no estimated range of potential loss can be determined at this time. The Company cannot
predict the ultimate outcome of the ARC Inflator Class Action.
On September 5, 2023, the National Highway Traffic Safety Administration (“NHTSA”)issued an initial decision to recall approximately
52 million frontal driver and passenger airbag inflators manufactured by ARC and Delphi Automotive Systems because NHTSA
determined that the airbag inflators contain a safety defect resulting in field ruptures. Some of the ARC inflators included in the airbag
modules that Autoliv or its subsidiaries supplied after the Delphi Acquisition were included in such initial decision. NHTSA has yet to
release its final decision. If NHTSA's final decision results in a recall, it is anticipated that such decision will be challenged in US federal
court. The Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the NHTSA ARC recall.
However, the Company continues to evaluate this matter, no accrual has been made, and no estimated range of potential loss can be
determined at this time. The Company cannot predict the ultimate outcome of the NHTSA ARC recall.
Specific Recalls:
In the second quarter of 2025, Stellantis initiated a recall of approximately 250,000 vehicles in the U.S. equipped with a certain model of
the Company’s side curtain airbag (the “Stellantis Recall”). The Company has determined pursuant to ASC 450 that a loss is
reasonably possible with respect to the Stellantis Recall. The Company is cooperating with Stellantis and continues to evaluate this
matter with Stellantis. In December 2025, Stellantis provided its calculations for the cost of the Stellantis Recall to the Company. The
Company now currently estimates a range of $0 to $123 million with respect to this potential loss, expects a substantial portion of a
potential loss would be covered by insurance, and no accrual has been recorded. The ultimate amount of the potential loss to the
Company cannot be estimated. However, the ultimate costs of a recall, could be significantly different than our current estimate. The
main variables affecting the possible costs are the number of vehicles ultimately determined to be affected by the issue, the cost per
vehicle associated with a recall, the determination of proportionate responsibility among the customer, the Company, and any relevant
sub-suppliers, as well as the actual insurance recoveries. The Company’sinsurance policies generally cover the costs of a recall,
although costs related to the replacement parts are not covered under its insurance policies. Another customer has contacted the
Company to inquire about the details of these incidents of nonconformance and are investigating whether its vehicles may generate
similar tests results. If this customer or others generate similar nonconformance test results, it is possible that there may be recalls of
additional vehicles in future quarters.
In the fourth quarter of 2020, the Company was made aware of a potential recall by American Honda Motor Co. of approximately
449,000 vehicles relating to the malfunction of front seat belt buckles was announced on March 9, 2023 (the “Honda Buckle Recall”).
The Company determined pursuant to ASC 450 that a loss with respect to the Honda Buckle Recall is probable and accrued an amount
that is reflected in the total product liability accrual in the fourth quarter of 2020, increased the accrual in the fourth quarter of 2021, and
reduced the accrual in the fourth quarter of 2023 based on vehicle repair cost data. Following the accrual increase in the third quarter of
2024, the amount by which the product liability accrual exceeds the product liability insurance receivable with respect to the Honda
Buckle Recall is approximately $12 million and includes self-insurance retention costs and deductibles. The ultimate loss to the
Company of the Honda Buckle Recall could be materially different from the amount the Company has accrued.
Volvo Car USA, LLC (together with its affiliates, “Volvo”)has recalled approximately 762,000 vehicles relating to the malfunction of
inflators produced by ZF (the “ZF Inflator Recall”).The recalled ZF inflators were included in airbag modules supplied by the Company
only to Volvo. The recall commenced in November 2020 and later expanded in September 2021. In August 2025, Volvo irrevocably
discharged all potential claims against the Company relating to this recall.

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Intellectual Property:
In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the
Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do
so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company
has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they
suffer as a result thereof. Such claims could be material.
The table in Note 14 above summarizes the change in the balance sheet position of the product related liabilities for the fiscal year
ended December 31, 2025.
20. Retirement Plans
DEFINED CONTRIBUTION PLANS
Many of the Company’semployees are covered by government sponsored pension and welfare programs. Under the terms of these
programs, the Company makes periodic payments to various government agencies. In addition, in some countries the Company
sponsors or participates in certain non-governmental defined contribution plans. Contributions to defined contribution plans for the
years ended December 31, 2025, 2024 and 2023 were $28 million, $25 million, and $26 million, respectively.
MULTIEMPLOYER PLANS
The Company participates in a multiemployer plan in Sweden. This ITP-2 plan is funded through Alecta and covers employees born
before 1979, for whom it provides a final pay pension benefit based on all service with participating employers. The Company must pay
for wage increases in excess of inflation on service earned with previous employers. The plan also provides disability and family
benefits and is more than 100% funded. The Company's contributions to this multiemployer plan for the years ended December 31,
2025, 2024 and 2023 were $4 million, $4 million and $4 million, respectively.
DEFINED BENEFIT PLANS
The Company has a number of defined benefit pension plans, both contributory and non-contributory, in the U.S., France, Germany,
India, Japan, Mexico, Philippines, Poland, Sweden, South Korea, Thailand, Turkey and the United Kingdom. There are funded as well
as unfunded plan arrangements which provide retirement benefits to both U.S. and non-U.S. participants.
The main plan is the U.S. plan for which the benefits are based on an average of the employee’searnings and on credited service
earned through December 31, 2021. In a prior year, the Company closed participation in the Autoliv ASP, Inc. Pension Plan to exclude
those employees hired after December 31, 2003. Within the U.S. there is also a non-qualified restoration plan that provides benefits to
employees whose benefits in the primary U.S. plan are restricted by limitations on the compensation that can be considered in
calculating their benefits. Effective December 31, 2021, the Autoliv ASP, Inc. Pension Plan is frozen to new accruals and, by extension,
the non-qualified restoration plan is also frozen. Settlement accounting has been recognized each quarter in 2025, 2024 and 2023 for
the U.S. plans because the lump-sum payments made to plan participants during 2025, 2024 and 2023 exceeded the sum of service
cost and interest cost.
For the Company’s non-U.S. defined benefit plans the most significant individual plan is in the U.K. The Company has closed
participation in the U.K. defined benefit plan to exclude all employees hired after April 30, 2003 with few members currently accruing
benefits.

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CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS FOR THE YEARS ENDED DECEMBER 31
U.S. Non-U.S.
(Dollars in millions) 2025 2024 2025 2024
Benefit obligation at beginning of year $ 205 $ 226 $ 205 $ 208
Service cost — — 11 10
Interest cost 11 11 13 12
Actuarial (gain) loss 5 (16) (8) 8
Benefits paid (7) (4) (11) (7)
Plan settlements/curtailments (8) (12) (3) (9)
Plan amendments — — 4 —
Plan combinations — — 7 —
Other — — 1 0
Translation difference — — 20 (17)
Benefit obligation at end of year $ 206 $ 205 $ 239 $ 205
Fair value of plan assets at beginning
of year $ 194 $ 204 $ 64 $ 70
Actual return on plan assets 18 3 3 (4)
Company contributions 1 2 14 27
Benefits paid (7) (4) (11) (7)
Plan settlements (8) (12) (3) (20)
Plan combinations — — 6 —
Translation difference — — 6 (2)
Fair value of plan assets at end of year $ 197 $ 194 $ 78 $ 64
Pension liability recognized in the
balance sheet $ 8 $ 11 $ 161 $ 142
The U.S. plan provides that benefits may be paid in the form of a lump sum, if so elected by the participant. In order to more accurately
reflect a market-derived pension obligation, Autoliv adjusts the assumed lump sum interest rate to reflect market conditions as of each
December 31. This methodology is consistent with the approach required under the Pension Protection Act of 2006, which provides the
rules for determining minimum funding requirements in the U.S.
COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS FOR
THE YEARS ENDED DECEMBER 31
U.S.
(Dollars in millions) 2025 2024 2023
Service cost $ — $ — $ —
Interest cost 11 11 12
Expected return on plan assets (10) (12) (10)
Amortization of actuarial loss 0 0 0
Settlement loss 0 1 1
Net periodic benefit cost $ 1 $ (0) $ 3
Non-U.S.
(Dollars in millions) 2025 2024 2023
Service cost $ 11 $ 10 $ 9
Interest cost 13 12 10
Expected return on plan assets (4) (3) (3)
Amortization of prior service costs 1 1 1
Amortization of actuarial loss 1 1 1
Settlement/curtailment (gain) loss (0) 14 0
Net periodic benefit cost $ 22 $ 34 $ 18
The service cost component is reported as an operating expense among other employee compensation costs in the Consolidated
Statements of Income. The remaining components, interest cost, expected returns on plan assets, amortization of prior service costs,
amortization of actuarial loss and settlement/curtailment gains (losses), are reported as Other non-operating items, net in the
Consolidated Statements of Income.
Amortization of the net actuarial loss from accumulated other comprehensive income is made over the estimated average remaining
lifetime of the plan participants (25 to 29 years) for the U.S. plans, and the estimated average remaining service lives or lifetimes of the
plan participants for the non-U.S. plans, the periods varying over a wide range between the different countries depending on the age of
the population concerned.

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COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS BEFORE TAX AS OF DECEMBER 31
U.S. Non-U.S.
(Dollars in millions) 2025 2024 2025 2024
Net actuarial loss $ 4 $ 7 $ 25 $ 29
Prior service cost — — 7 3
Total accumulated other comprehensive loss
recognized in the balance sheet $ 4 $ 7 $ 32 $ 33
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BEFORE TAX FOR THE YEARS ENDED DECEMBER 31
U.S. Non-U.S.
(Dollars in millions) 2025 2024 2025 2024
Total retirement benefit recognized in accumulated
other comprehensive loss at beginning of year $ 7 $ 15 $ 33 $ 24
Net actuarial loss (gain) (2) (7) (6) 16
Prior service cost — — 4 —
Amortization or curtailment recognition of prior service
credit (cost) — — (1) (1)
Amortization or settlement recognition of net gain (loss) (0) (1) (1) (4)
Translation difference — — 3 (2)
Total retirement benefit recognized in accumulated
other comprehensive loss at end of year $ 4 $ 7 $ 32 $ 33
The accumulated benefit obligation for the U.S. non-contributory defined benefit pension plans was $206 million and $205 million at
December 31, 2025 and 2024, respectively. The accumulated benefit obligation for the non-U.S. defined benefit pension plans was
$194 million and $161million at December 31, 2025 and 2024, respectively.
Pension plans for which the accumulated benefit obligation (ABO) is in excess of the plan assets reside in the following countries: U.S.,
India, Mexico, France, Germany, Japan, Poland, South Korea, Sweden, Switzerland, Thailand and Turkey.
PENSION PLANS FOR WHICH ABO EXCEEDS THE FAIR VALUE OF PLAN ASSETS AS OF DECEMBER 31
U.S. Non-U.S.
(Dollars in millions) 2025 2024 2025 2024
Projected Benefit Obligation (PBO) $ 206 $ 205 $ 181 $ 148
Accumulated Benefit Obligation (ABO) 206 205 141 110
Fair value of plan assets 197 194 11 2
The Company, in consultation with its actuarial advisors, determines certain key assumptions to be used in calculating the projected
benefit obligation and annual net periodic benefit cost.
ASSUMPTIONS USED TO DETERMINE THE BENEFIT OBLIGATIONS AS OF DECEMBER 31
U.S. Non-U.S.1)
(% Weighted average / % Weighted average range) 2025 2024 2025 2024
Discount rate 5.22 5.60 1.30-.9.70 1.25-11.00
Rate of increases in compensation level n/a n/a 1.50-5.00 2.25-5.00
1) The % weighted average ranges in the tables above represent significant non-U.S. plans only.
ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT COST FOR THE YEARS ENDED DECEMBER 31
U.S.
(% Weighted average) 2025 2024 2023
Discount rate 5.60 5.13 5.41
Rate of increases in compensation level n/a n/a n/a
Expected long-term rate of return on assets 5.61 6.21 5.05
Non-U.S.1)
(% Weighted average range) 2025 2024 2023
Discount rate 1.25-11.00 1.00-10.25 0.75-9.75
Rate of increases in compensation level 2.25-5.00 2.25-5.00 2.10-5.00
Expected long-term rate of return on assets 3.00-5.90 4.00-4.95 4.20-4.80
1) The % weighted average ranges in the tables above represent significant non-U.S. plans only.

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The discount rate for the U.S. plans has been set based on the rates of return on high-quality fixed-income investments currently
available at the measurement date and expected to be available during the period the benefits will be paid. The expected timing of cash
flows from the plan has also been considered in selecting the discount rate. In particular, the yields on bonds rated AA or better on the
measurement date have been used to set the discount rate. The discount rate for the U.K. plan has been set based on the weighted
average yields on long-term high-grade corporate bonds and is determined by reference to financial markets on the measurement date.
The expected rate of increase in compensation levels and long-term rate of return on plan assets are determined based on a number of
factors and must take into account long-term expectations and reflect the financial environment in the respective local market. The
expected return on assets for the U.S. and U.K. plans are based on the fair value of the assets as of December 31.
The level of equity exposure is currently targeted at approximately 32% for the primary U.S. plan. The investment objective is to provide
an attractive risk-adjusted return that will ensure the payment of benefits while protecting against the risk of substantial investment
losses. Correlations among the asset classes are used to identify an asset mix that Autoliv believes will provide the most attractive
returns. Long-term return forecasts for each asset class using historical data and other qualitative considerations to adjust for projected
economic forecasts are used to set the expected rate of return for the entire portfolio. The Company has assumed a long-term rate of
return on the U.S. plan assets of 5.61% for calculating the 2025 expense and 6.20% for the 2026 expense.
The Company has assumed a long-term rate of return on the non-U.S. plan assets in a range of 3.00-5.90% for 2025. The closed U.K.
plan, which has a targeted allocation of almost 100% debt instruments, accounts for approximately 67% of the total non-U.S. plan
assets.
Autoliv made contributions to the U.S. plans during 2025 and 2024 amounting to $1 million and $2 million, respectively. Contributions to
the U.K plan, which is the most significant non-U.S. plan, during 2025 and 2024 amounted to $2 million and $2 million, respectively.
The Company's contributions to its U.S. pension plans as well as to its U.K. plan, are expected to be immaterial in 2026 and the years
thereafter.
FAIR VALUE OF TOTAL PLAN ASSETS FOR THE YEARS ENDED DECEMBER 31
U.S. U.S. Non-U.S.
ASSETS CATEGORY (% Weighted average)
Target
allocation 2025 2024 2025 2024
Equity securities % 32 27 30 0 0
Debt instruments % 68 71 69 58 63
Other assets % — 1 1 42 37
Total % 100 100 100 100 100
The following table summarizes the fair value of the Company’sU.S. and non-U.S. defined benefit pension plan assets:
Fair value measurement at December 31,
(Dollars in millions) 2025 2024
Assets at fair value Level 2
Equity instruments
U.S. Large Cap $ 6 $ 6
U.S. Mid Cap 32 34
U.S. Small Cap 4 5
Non-U.S. All Cap 13 13
Debt instruments
U.S. Government bonds 38 35
U.S Aggregate bonds 102 99
Non-U.S. Government bonds 23 21
Non-U.S. Corporate bonds 22 20
Insurance Contracts 24 15
Managed investment funds 6 5
Other Investments 5 5
Total assets at fair value Level 2 $ 275 $ 258
The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair
value measurement. After further analysis of the characteristics of certain investments (e.g. fair values based on net asset values held
by common collective trusts) we have evaluated the fair value of plan assets should be reported as Level 2.

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The estimated future benefit payments for the pension benefits reflect expected future service, as appropriate. The amount of benefit
payments in a given year may vary from the projected amount, especially for the U.S. plan since historically this plan pays the majority
of benefits as a lump sum, where the lump sum amounts vary with market interest rates.
PENSION BENEFITS EXPECTED PAYMENTS (dollars in millions) U.S. Non-U.S.
2026 $ 24 $ 16
2027 22 16
2028 22 16
2029 21 16
2030 20 18
Years 2031-2035 79 113
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The Company currently provides postretirement health care and life insurance benefits to a limited group of U.S. retirees.
In general, the terms of the plans provide that U.S. employees who retire after attaining age 55, with 15 years of service (5 years before
December 31, 2006), are reimbursed for qualified medical expenses up to a maximum annual amount. Spouses for certain retirees are
also eligible for reimbursement under the plan. Life insurance coverage is available for those who elect coverage under the retiree
health plan. During 2014, the plan was amended to move from a self-insured model where employees were charged an estimated
premium based on anticipated plan expenses for continued coverage, to a plan where retirees are provided a fixed contribution to a
Health Retirement Account (HRA). Retirees can use the HRA funds to purchase insurance through a private exchange. Employees
hired on or after January 1, 2004 are not eligible to participate in the plan. As of December 31, 2025 and 2024, the benefit obligation for
postretirement benefit plans other than pensions were $13 million and $12 million, respectively. The liability for postretirement benefits
other than pensions is classified as other non-current liabilities in the balance sheet. The components of the net periodic benefit costs
associated with these plans were immaterial for the years 2025, 2024 and 2023.
The average discount rate used to determine the U.S. postretirement benefit obligation was 5.64% in 2025 and 5.73% in 2024. The
average discount rate used in determining the postretirement benefit cost was 5.73% in 2025, 5.16% in 2024 and 5.39% in 2023.
The accumulated other comprehensive income before tax associated with the postretirement benefit plans other than pensions
recognized in the balance sheet as of December 31, 2025 and 2024 were $5 million and $6 million, respectively. The accumulated
other comprehensive income consisted only of a net actuarial gain component for the years 2025 and 2024.
The estimated future benefit payments for the postretirement benefits, which reflect expected future service as appropriate, are
expected to be immaterial for all the future years.
21. Segment Information
The Company has a single operating and reportable segment which includes Autoliv’s airbag and steering wheels and seatbelt
products and components. The determination of a single operating segment is consistent with the consolidated financial information
regularly provided to the Company’schief operating decision maker (“CODM”).
The Company’sCEO, as the CODM, uses consolidated, single-segment financial information for purposes of evaluating performance,
making operating decisions and allocating resources.
The Company’s customers consist of all major European, U.S. and Asian automobile manufacturers. Sales to individual customers
representing 10% or more of net sales were:
In 2025: No individual customer representing 10% or more.
In 2024: No individual customer representing 10% or more.
In 2023: Renault 10% (including Nissan and Mitsubishi) and Stellantis 10%.
NET SALES BY REGION (Dollars in millions) 2025 2024 2023
China $ 2,095 $ 2,010 $ 2,105
Asia, excl. China 2,124 2,010 1,968
Americas 3,480 3,424 3,526
Europe 3,116 2,946 2,877
Total $ 10,815 $ 10,390 $ 10,475
The Company has attributed net sales to the geographic area based on the location of the entity selling the final product.
External sales in the U.S. amounted to $1,953 million, $2,075 million and $2,342 million in 2025, 2024 and 2023, respectively. Of the
external sales, exports from the U.S. to other regions amounted to approximately $267 million, $292 million and $343 million in 2025,
2024 and 2023, respectively.

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NET SALES BY PRODUCT (Dollars in millions) 2025 2024 2023
Airbag, Steering Wheels1) $ 7,302 $ 7,023 $ 7,055
Seatbelt Products1) 3,513 3,367 3,420
Total net sales $ 10,815 $ 10,390 $ 10,475
1) Including Corporate and Other sales.
LONG-LIVED ASSETS (Dollars in millions) 2025 2024
China $ 628 $ 621
Asia, excl China 473 438
Americas 588 541
Europe 899 797
Total $ 2,588 $ 2,397
Long -lived assets in the table above consists of Property, Plant and Equipment and Operating Lease right-of-use asset. Long-lived
assets in the U.S. amounted to $280 million and $272 million for 2025 and 2024, respectively.
The CODM assesses the Company's performance and decides how to allocate resources based on consolidated net income (loss) in
the Consolidated Statements of Income, which is assessed to be the segment measure of profit or loss. This measure is used to
monitor actual results to evaluate the performance of the segment versus the strategic targets. The segment assets are equal to the
assets presented in the Consolidated Balance Sheets.
The significant expenses that are regularly provided to the CODM are disclosed in the Consolidated Statements of Net Income as a
part of the consolidated net income and are as follows.
Significant segment expenses / income (Dollars in millions) 2025 2024 2023
Total direct costs $ (7,231) $ (7,050) $ (7,208)
Total production overhead costs (1,510) (1,413) (1,446)
Cost of sales (8,741) (8,463) (8,654)
Research, development and engineering expenses (gross) (616) (612) (618)
Engineering income 202 214 193
Research, development and engineering expenses, net (413) (398) (425)
Our other significant segment items that are regularly provided to the CODM include selling, general and administrative expenses, and
other income (expense) which are disclosed as separate line items in the Consolidated Statements of Income. Other expenses consist
of Income from equity method investments, Interest income, Interest expense, Other non-operating items, net and Income taxes, which
are disclosed as separate line items in the Consolidated Statement of income.
22. Earnings Per Share
The computation of basic and diluted earnings per share were as follows (dollars and shares in millions):
2025 2024 2023
Numerator:
Basic and diluted:
Net income attributable to common shareholders $ 735 $ 646 $ 488
Denominator:
Basic weighted average common stock 76.6 80.2 85.0
Added: Weighted average share awards 0.3 0.2 0.2
Diluted weighted average common stock 76.9 80.4 85.2
Net earnings per share - basic $ 9.59 $ 8.06 $ 5.74
Net earnings per share - diluted $ 9.55 $ 8.04 $ 5.72
Anti-dilutive shares outstanding for the years ended December 31, 2025, 2024 and 2023 were immaterial.
23. Subsequent Events
There were no reportable events subsequent to December 31, 2025.

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
There have been no changes to and no disagreements with our independent auditors regarding accounting or financial disclosure
matters in our two most recent fiscal years.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
An evaluation has been carried out by the Company’smanagement, under the supervision and with the participation of the Company’s
Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and
procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”))as of the end of the period covered by this report. Based on such evaluation, the Company’sChief Executive Officer
and Chief Financial Officer have concluded that, as of the end of such period, the Company’sdisclosure controls and procedures are
effective.
Internal Control over Financial Reporting
(a) Management’sAnnual Report on Internal Control Over Financial Reporting
Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting.
Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by,
or under the supervision of, the Company’sprincipal executive and principal financial officers and effected by the Company’sboard of
directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes
those policies and procedures that:
• pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions
of the assets of the Company;
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being
made only in accordance with authorizations of management and directors of the Company; and
• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the
Company’sassets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any
evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of Autoliv’sinternal control over financial reporting as of December 31, 2025. In making this
assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in
Internal Control – Integrated Framework (2013 framework).
Based on our assessment, we believe that, as of December 31, 2025, the Company’s internal control over financial reporting is
effective.
(b) Attestation Report of the Registered Public Accounting Firm
Ernst & Young AB has issued an attestation report on the Company’sinternal control over financial reporting, which is included herein
as the Report of Independent Registered Public Accounting Firm under Item 8. Financial Statements and Supplementary Data for the
year ended December 31, 2025.
(c) Changes in Internal Control over Financial Reporting
There have not been any changes in the Company’sinternal control over financial reporting (as such term is defined in Rules 13a-15-(f)
and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2025 that have materially affected, or are reasonably
likely to materially affect, the Company’sinternal control over financial reporting.

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Item 9B. Other Information
On November 19, 2025, Mikael Hagström, Vice President, Corporate Controller, adopted a trading plan intended to satisfy Rule 10b5-
1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance
stock units in February 2026. These sales are intended to cover vesting taxes and would occur between February 17, 2026 and
February 27, 2026.
On November 19, 2025, Jonas Jademyr, Executive Vice President, Quality and Project Management, adopted a trading plan intended
to satisfy Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock
units and performance stock units in February 2026. These sales are intended to cover vesting taxes and would occur between
February 17, 2026 and February 27, 2026.
On November 19, 2025, Christian Swahn, Executive Vice President, Supply Chain Management, adopted a trading plan intended to
satisfy Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock
units and performance stock units in February 2026. These sales are intended to cover vesting taxes and would occur between
February 17, 2026 and February 27, 2026.
On November 19, 2025, Anthony Nellis, Executive Vice President, Legal Affairs, General Counsel and Secretary, adopted a trading
plan intended to satisfy Rule 10b5-1(c) to sell 50% of his net shares of Autoliv, Inc. common stock he would acquire upon the vesting of
restricted stock units and performance stock units in February 2026 after in-kind tax withholding. Such sales to occur between
February 17, 2026 and February 27, 2026.
On November 25, 2025, Mikael Bratt, President & Chief Executive Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to
sell 60% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of performance stock units in February 2026.
These sales are intended to cover vesting taxes and would occur between February 19, 2026 and February 27, 2026.
On November 26, 2025, Magnus Jarlegren, President, Autoliv Europe, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell
50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance stock
units in February 2026. These sales are intended to cover vesting taxes and would occur between February 17, 2026 and February 27,
2026.

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PART III
Item 10. Directors, Executive Officers and Corporate Governance
The information required by Item 10. regarding executive officers, directors and nominees for election as directors of Autoliv, Autoliv’s
Audit, Risk, and Compliance Committee, Autoliv’scode of ethics, insider trading policies and procedures, and compliance with Section
16(A) of the Securities Exchange Act is incorporated herein by reference from the information under the captions “ExecutiveOfficers of
the Company” and “Proposal1: Election of Directors”, “Committeesof the Board” and “Audit,Risk, and Compliance Committee Report”,
“CorporateGovernance Guidelines and Codes of Conduct”, “InsiderTrading Policies and Procedures”, and “DelinquentSection 16(a)
Reports”, respectively, in the Company’s 2026 Proxy Statement. Information on Board meeting attendance is provided under the
caption “Board Meetings”in the 2026 Proxy Statement and incorporated herein by reference.
Item 11. Executive Compensation
The information required by Item 11. regarding executive compensation for the year ended December 31, 2025 is included under the
caption “CompensationDiscussion and Analysis”in the 2026 Proxy Statement and is incorporated herein by reference. The information
required by the same item regarding Leadership Development and Compensation Committee is included in the sections “Leadership
Development and Compensation Committee Interlocks and Insider Participation” and “Leadership Development and Compensation
Committee Report”in the 2026 Proxy Statement and is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
The information required by Item 12. regarding beneficial ownership of Autoliv’scommon stock is included under the caption “Security
Ownership of Certain Beneficial Owners and Management”in the 2026 Proxy Statement and is incorporated herein by reference.
Securities Authorized for Issuance Under the Stock Incentive Plan
The following table provides information as of December 31, 2025, about the common stock that may be issued under the Stock
Incentive Plan. The Company does not have any equity compensation plans that have not been approved by its stockholders.
Plan Category
(a) Number of
Securities to
be issued upon
exercise of
outstanding options,
warrants and rights
(b) Weighted-
average exercise
price of outstanding
options, warrants
and rights(2)
(c) Number of
securities remaining
available for future
issuance under equity
compensation plans
(excluding securities
reflected in column
(a))(3)
Equity compensation plans
approved by security
holders (1) — $ — 2,245,274
Equity compensation plans
not approved by security
holders — — —
Total — $ — 2,245,274
(1) Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated on May 6, 2009, as amended by Amendment No. 1 dated December 17, 2010
and Amendment No. 2 dated May 8, 2012.
(2) Excludes restricted stock units and performance shares which convert to shares of common stock for no consideration.
(3) All such shares are available for issuance pursuant to grants of full-value stock awards.
Item 13. Certain Relationships and Related Transactions, and Director Independence
Information regarding the Company’s policy and procedures concerning related party transactions is included under the caption
“Related Person Transactions” in the 2026 Proxy Statement and is incorporated herein by reference. Information regarding director
independence can be found under the caption “Board Independence” in the 2026 Proxy Statement and is incorporated herein by
reference.
Item 14. Principal Accountant Fees and Services
The information required by Item 9(e) of Schedule 14A regarding principal accounting fees and the information required by Item 14
regarding the pre-approval process of accounting services provided to Autoliv is included under the caption “Proposal3. Ratification of
Appointment of Independent Registered Public Accounting Firm Appointment”in the 2026 Proxy Statement and is incorporated herein
by reference.

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PART IV
Item 15. Exhibit and Financial Statement Schedules
(a) Documents Filed as Part of this Report
(1) Financial Statements
(i) Consolidated Statements of Income – Years ended December 31, 2025, 2024 and 2023;
(ii) Consolidated Statements of Comprehensive Income – Years ended December 31, 2025, 2024 and 2023;
(iii) Consolidated Balance Sheets – as of December 31, 2025 and 2024;
(iv) Consolidated Statements of Cash Flows – Years ended December 31, 2025, 2024 and 2023;
(v) Consolidated Statements of Total Equity – as of December 31, 2025, 2024 and 2023;
(vi) Notes to Consolidated Financial Statements; and
(vii) Reports of Independent Registered Public Accounting Firm (PCAOB Auditor ID No. 1433).
(2) Financial Statement Schedules
All of the schedules specified under Regulation S-X to be provided by Autoliv have been omitted either because they are not applicable,
they are not required, or the information required is included in the financial statements or notes thereto.
(3) Exhibits
Exhibit
No. Description
3.1 Autoliv’sRestated Certificate of Incorporation, as amended, incorporated herein by reference to Exhibit 3.1 to the Quarterly
Report on Form 10-Q (File No. 001-12933, filing date April 22, 2015).
3.2 Autoliv’sThird Restated By-Laws, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K (File
No. 001-12933, filing date December 18, 2015).
4.1 Indenture, dated March 30, 2009, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein
by reference to Exhibit 4.1 to Autoliv’sRegistration Statement on Form 8-A (File No. 001-12933, filing date March 30, 2009)
4.2 Second Supplemental Indenture (including Form of Global Note), dated March 15, 2012, between Autoliv, Inc. and U.S.
Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K
(File No. 001-12933, filing date March 15, 2012).
4.3 Form of Note Purchase and Guaranty Agreement dated April 23, 2014, among Autoliv ASP, Inc., Autoliv, Inc. and the
purchasers named therein, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No.
001-12933, filing date April 25, 2014).
4.4 Amendment and Waiver 2014 Note Purchase and Guaranty Agreement, dated May 24, 2018 among Autoliv, Inc., Autoliv
ASP, Inc. and the noteholders named therein, incorporated herein by reference to Exhibit 4.4 to the Quarterly Report on
Form 10-Q (File No. 001-12933, filing date July 27, 2018).
4.5 Agency Agreement dated June 26, 2018 among Autoliv, Inc., Autoliv ASP Inc. and HSBC Bank PLC, incorporated herein
by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).
4.6 Description of Registrant´s Securities, incorporated by reference to Exhibit 4.13 to the Annual Report on Form 10-K (File
No. 001-12933, filing date February 19, 2021).
4.7 Amended and Restated Agency Agreement, dated March 14, 2025, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers
named therein, incorporated herein by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q (File No. 001-12933,
filing date April 16, 2025).
4.8 Base Listing Particulars Agreement, dated March 14, 2025, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named
therein, incorporated herein by reference to Exhibit 4.7 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing
date April 16, 2025).
4.9 Amended and Restated Programme Agreement, dated March 14, 2025, among Autoliv, Inc., Autoliv ASP, Inc. and the
dealers named therein, incorporated herein by reference to Exhibit 4.8 to the Quarterly Report on Form 10-Q (File No. 001-
12933, filing date April 16, 2025).
4.10 General Terms and Conditions for Swedish Depository Receipts in Autoliv, Inc. representing common shares in Autoliv,
Inc., effective as of April 8, 2024, with Skandinaviska Enskilda Banken AB (publ) serving as custodian, incorporated herein
by reference to Exhibit 4.9 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 26, 2024).

===== SIDA 128 =====

93
10.1+
10.2+
10.3+
10.4+
10.5+
10.6+
10.7
10.8+
10.9
10.10+
10.11+
10.12+
10.13+
10.14+
10.15+
10.16
10.17+
10.18+
10.19+
10.20+
Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated on May 6, 2009, incorporated herein by reference to 
Appendix A of the Definitive Proxy Statement of Autoliv, Inc. on Schedule 14A (filing date March 23, 2009).
Amendment No. 1 to the Autoliv, Inc. 1997 Stock Incentive Plan as amended and restated on May 6, 2009, dated 
December 17, 2010, incorporated herein by reference to Exhibit 10.24 to the Annual Report on Form 10-K (File No. 001-
12933, filing date February 23, 2011).
Amendment No. 
2 to the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated on May 6, 2009, dated May 8, 
2012, incorporated herein by reference to Exhibit 10.29 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing 
date July 20, 2012).
Amendment No. 3 to the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated, dated April 24, 2017, 
incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 
28, 2017).
Employment Agreement, effective as of June 29, 2018, by and between Autoliv, Inc. and Mikael Bratt, incorporated herein 
by reference to Exhibit 10.8 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).
Employment Agreement, effective as of June 29, 2018, by and between Autoliv, Inc. and Anthony J.  Nellis, incorporated 
herein by reference to Exhibit 10.14 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).
Cooperation Agreement, dated March 1, 2019, between Autoliv, Inc. and Cevian Capital II GP Limited, incorporated herein 
by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-12933, filing date March 1, 2019).
Employment Agreement, dated March 18, 2019, between Autoliv, Inc. and Christian Swahn, incorporated herein by 
reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 25, 2019).
Form of Indemnification Agreement between Autoliv, Inc. and its directors and certain of its executive officers, incorporated 
herein by reference to Exhibit 10.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 25, 
2019).
Employment Agreement, dated November 26, 2019 and effective as of March 1, 2020, between Autoliv, Inc. and Fredrik 
Westin, incorporated herein by reference to Exhibit 10.56 to the Annual Report on Form 10-K (File No. 001-12933, filing 
date February 21, 2020).
Employment Agreement, dated June 8, 2020 and effective as of June 15, 2020, by between Autoliv, Inc. and Kevin Fox, 
incorporated herein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 
17, 2020).
Employment Agreement, effective as of August 17, 2020, by and between Autoliv AB and Mikael Hagström incorporated 
herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 23, 
2020).
Employment Agreement, dated October 1, 2020 and effective as of November 1, 2020, by and between Autoliv Inc. and 
Colin Naughton incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, 
filing date April 23, 2021).
Amendment No. 1, effective as of April 1, 2021, to Employment Agreement, effective March 18, 2019, by and between 
Autoliv Inc. and Christian Swahn incorporated herein by reference to Exhibit 10.5 to the Quarterly Report on Form 10-Q
(File No. 001-12933, filing date April 23, 2021).
Employment Agreement, dated December 14, 2021 and effective as of January 19, 2021, by and between Autoliv Inc. and 
Sng Yih incorporated herein by reference to Exhibit 10.46 to the 
Annual Report on Form 10-K (File No. 001-12933, filing 
date February 22, 2022).
Facilities Agreement, dated May 23, 2022, among Autoliv, Inc., Autoliv ASP, Inc., Citibank, N.A., London Branch, Mizuho 
Bank, Ltd., Skandinaviska Enskilda Banken AB (publ), and the other parties and lenders named therein, incorporated 
herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 22, 2022).
Employment Agreement, dated  December 1, 2022 and effective as of January 15, 2023, by and between Autoliv, Inc. and 
Jonas Jademyr, incorporated herein by reference to Exhibit 10.37 to the Annual Report on Form 10-K (File No. 001-12933, 
filing date February 16, 2023).
Form of Non-Employee Director Restricted Stock Unit Grant Agreement (2023) to be used under the Autoliv, Inc. 1997 
Stock Incentive Plan, as amended and restated, incorporated herein by reference to Exhibit 10.5 to the Quarterly Report on 
Form 10-Q (File No. 001-12933, filing date July 21, 2023).
Employment Agreement, dated May 17, 2023, by and between Autoliv, Inc. and Petra Albuschus incorporated herein by 
reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 21, 2023).
Amendment No. 1 to Employment Agreement, dated October 1, 2023, by and between Autoliv, Inc. and Colin Naughton 
incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date 
October 20, 2023).

===== SIDA 129 =====

94
10.21+ Employment Agreement, dated November 21, 2023, by and between Autoliv Switzerland GmbH and Magnus Jarlegren
incorporated herein by reference to Exhibit 10.37 to the Annual Report on Form 10-K (File No. 001-12933, filing date
February 20, 2024).
10.22+ Form of Employee 2024 restricted stock units grant agreement promised under Autoliv, Inc. 1997 Stock Incentive Plan, as
amended and restated incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-
12933, filing date April 26, 2024).
10.23+ Form of Employee 2024 performance share units grant agreement promised under the Autoliv, Inc. 1997 Stock Incentive
Plan, as amended and restated incorporated by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No.
001-12933, filing date April 26, 2024).
10.24+ Employment Agreement, effective June 1, 2024, by and between Autoliv, Inc. and Staffan Olsson incorporated herein by
reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 19, 2024).
10.25 Revolving Credit Facility Agreement, dated July 17, 2024, among Autoliv, Inc., Autoliv ASP, and Standard Chartered Bank
incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date
October 18, 2024).
10.26+ Employment Agreement, dated September 13, 2024, by and between Autoliv (Shanghai) Management Co. Ltd. and Fabien
Dumont incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing
date October 18, 2024).
10.27+ Secondment Agreement, dated June 1, 2025, among Autoliv, Inc. and Autoliv Asia ROH Co., Ltd., and Colin Naughton
incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July
18, 2025).
10.28+ Amendment No. 1 to Employment Agreement, dated May 15, 2025, effective as of December 31, 2024, by and between
Autoliv (Shanghai) Management Co. Ltd. and Sng Yih incorporated herein by reference to Exhibit 10.2 to the Quarterly
Report on Form 10-Q (File No. 001-12933, filing date July 18, 2025).
10.29+* Autoliv, Inc. Non-Employee Director Compensation Policy effective May 1, 2025.
19 Autoliv Insider Trading Policy incorporated herein by reference to Exhibit 19 to the Annual Report on Form 10-K (File No.
001-12933, filing date February 20, 2024).
21* Autoliv’sList of Subsidiaries.
23* Consent of Independent Registered Public Accounting Firm.
31.1* Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of
1934, as amended.
31.2* Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934,
as amended.
32.1* Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the
Sarbanes-Oxley Act of 2002.
32.2* Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the
Sarbanes-Oxley Act of 2002.
97.1 Autoliv, Inc. Compensation Recoupment Policy, dated September 14, 2023, incorporated herein by reference to Exhibit
97.1 to the Annual Report on Form 10-K (File No. 001-12933, filing date February 20, 2024).
101.INS* Inline XBRL Instance Document – The instance document does not appear in the Interactive Date File because its XBRL
tags are embedded within the inline XBRL document.
101.SCH* Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Document.
104* Cover Page Interactive Data File (embedded within the inline XBRL document).
* Filed herewith.
+ Management contract or compensatory plan.
† Confidential treatment requested as to portions of the exhibit. Confidential materials omitted and filed separately with the Securities
and Exchange Commission.

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95
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized, as of February 19, 2026.
AUTOLIV, INC.
(Registrant)
By /s/ Fredrik Westin
Fredrik Westin
Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on
behalf of the registrant and in the capacities indicated, as of February 19, 2026.
Title Name
Chairman of the Board of Directors /s/ Jan Carlson
Jan Carlson
Chief Executive Officer and President (Principal Executive Officer) /s/ Mikael Bratt
and Director Mikael Bratt
Chief Financial Officer /s/ Fredrik Westin
(Principal Financial and Principal Accounting Officer) Fredrik Westin
Director /s/ Laurie Brlas
Laurie Brlas
Director /s/ Leif Johansson
Leif Johansson
Director /s/ Adriana Karaboutis
Adriana Karaboutis
Director /s/ Franz-Josef Kortüm
Franz-Josef Kortüm
Director /s/ Frédéric Lissalde
Frédéric Lissalde
Director /s/ Xiaozhi Liu
Xiaozhi Liu
Director /s/ Gustav Lundgren
Gustav Lundgren
Director /s/ Martin Lundstedt
Martin Lundstedt
Director /s/ Thaddeus Senko
Thaddeus Senko

===== SIDA 131 =====

96
Glossary and Definitions
In this report, the following company or industry specific terms and abbreviations are used:
CAPITAL EMPLOYED
Total equity and net debt (net cash).
CAPITAL EXPENDITURES
Investments in property, plant and equipment.
CPV
Content Per Vehicle, i.e. value of the safety products in a vehicle.
EARNINGS PER SHARE
Net income attributable to controlling interest relative to weighted average number of shares (net of treasury shares) assuming dilution
and basic, respectively.
EBITDA
Earnings before interest, taxes, depreciation, and amortization
GROSS MARGIN
Gross profit relative to sales.
MEDIUM AND LOW INCOME MARKETS
Includes all markets except North America, Western Europe, Japan and South Korea.
HEADCOUNT
Employees plus temporary personnel.
HIGH INCOME MARKETS
Includes North America, Western Europe, Japan and South Korea.
INVENTORY OUTSTANDING IN RELATION TO SALES
Outstanding inventory relative to annualized fourth quarter sales.
LEVERAGE RATIO
Debt per the Policy (Net debt adjusted for pension liabilities) in relation to EBITDA per the Policy (Adjusted EBITDA) (Earnings Before
Interest, Taxes, Depreciation and Amortization, other non-operating items, net, income from equity method investments and capacity
alignments), see Item 7 for a calculation of this non-GAAP measure.
LVP
Light vehicle production of light motor vehicles with a gross weight of up to 3.5 metric tons.
This 10-K includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January 2026. All rights reserved.
S&P Global is a global supplier of independent industry information. The permission to use S&P Global copyrighted reports, data and
information does not constitute an endorsement or approval by S&P Global of the manner, format, context, content, conclusion, opinion
or viewpoint in which S&P Global reports, data and information or its derivations are used or referenced herein.
NET DEBT
Short and long-term debt including debt-related derivatives less cash and cash equivalents, see Non-GAAP Performance Measures in
Item 7 for a reconciliation of this non-GAAP measure.

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97
NUMBER OF EMPLOYEES
Employees with a continuous employment agreement, recalculated to full time equivalent heads.
OEM
Original Equipment Manufacturer referring to customers assembling new vehicles.
OPERATING MARGIN
Operating income relative to sales.
PAYABLES OUTSTANDING IN RELATION TO SALES
Outstanding payables relative to annualized fourth quarter sales.
RECEIVABLES OUTSTANDING IN RELATION TO SALES
Outstanding receivables relative to annualized fourth quarter sales.
RETURN ON CAPITAL EMPLOYED
Operating income and equity in earnings of affiliates, relative to average capital employed.
RETURN ON TOTAL EQUITY
Net income relative to average total equity.

===== SIDA 133 =====

(US$ millions, except per share data, unaudited) 2025 2024 2023 2022 2021
Sales and Income
Net sales $10,82 $10,39 $10,48 $8,84 $8,23
Airbags, Steering Wheels and Other 1) 7 ,302 7 ,023 7 ,055 5,807 5,380
Seatbelt Products and Other 1) 3,513 3,367 3,420 3,035 2,850
Operating income 1,088 979 690 659 675
Net income attributable to controlling interest 735 646 488 423 435
Earnings per share – basic 2) 9.59 8.06 5.74 4.86 4.97
Earnings per share – diluted 2) 9.55 8.04 5.72 4.85 4.96
Gross margin 3) 19.2% 18.5% 17 .4% 15.8% 18.4%
S,G&A in relation to sales (5.3)% (5.1)% (4.8)% (4.9)% (5.3)%
RD&E net in relation to sales (3.8)% (3.8)% (4.1)% (4.4)% (4.7)%
Operating margin 4) 10.1% 9.4% 6.6% 7 .5% 8.2%
Adjusted operating margin 5,6) 10.3% 9.7% 8.8% 6.8% 8.3%
Balance Sheet
Trade working capital 6,7) 1,221 1,115 1,232 1,183 1,332
Trade working capital in relation to sales 8) 10.8% 10.7% 11.2% 12.7% 15.7%
Receivables outstanding in relation to sales 9) 19.8% 19.0% 20.0% 20.4% 20.0%
Inventory outstanding in relation to sales 10) 8.8% 8.8% 9.2% 10.4% 9.2%
Payables outstanding in relation to sales 11) 17 .8% 17 .2% 18.0% 18.1% 13.5%
Total equity 2,582 2,285 2,570 2,626 2,648
Total parent shareholders’ equity per share 34.43 29.26 30.93 30.30 30.10
Current assets excluding cash 3,497 3,153 3,475 3,119 2,705
Property , plant and equipment, net 2,419 2,239 2,192 1,960 1,855
Goodwill and Intangible assets 1,386 1,375 1,385 1,382 1,395
Capital employed 4,148 3,840 3,937 3,810 3,700
Net debt 6) 1,566 1,554 1,367 1,184 1,052
Total assets 8,644 7 ,804 8,332 7 ,717 7 ,537
Long-term debt 1,734 1,522 1,324 1,054 1,662
Return on capital employed 12) 26.4% 25.0% 17 .7% 17 .5% 18.3%
Return on total equity 13) 30.0% 27 .2% 19.0% 16.3% 17 .1%
Total equity ratio 30% 29% 31% 34% 35%
Cash flow and other data
Operating cash flow 1,157 1,059 982 713 754
Depreciation and amortization 407 387 378 363 394
Capital expenditures, net 423 563 569 485 454
Capital expenditures, net in relation to sales 3.9% 5.4% 5.4% 5.5% 5.5%
Free operating cash flow6,14) 734 497 414 228 300
Cash conversion6,15) 100% 77% 85% 54% 69%
Direct shareholder return16) 590 771 577 339 165
Cash dividends paid per share 3.12 2.74 2.66 2.58 1.88
Number of shares outstanding (millions)17) 74.7 7 7. 7 82.6 86.2 87 .5
Number of employees, December 31 58,000 59,500 62,900 61,700 55,900
1) Including Corporate sales. 2) Net of treasury shares. 3) Gross profit relative to sales. 4) Operating income relative to sales. 5) Excluding effects from capacity alignments, antitrust related matters and for FY 
2023 the Andrews litigation settlement. 6) Non-GAAP measure, for reconciliation see tables above. 7) Outstanding receivables and outstanding inventory less outstanding payables. 8) Outstanding receivables 
and outstanding inventory less outstanding payables relative to annualized fourth quarter sales.  9) Outstanding receivables relative to annualized fourth quarter sales. 10) Outstanding inventory relative to 
annualized fourth quarter sales. 11) Outstanding payables relative to annualized fourth quarter sales. 12) Operating income and income from equity method investments, relative to average capital employed. 
13) Income relative to total equity . 14) Operating cash flow less Capital expenditures, net. 15) Free operating cash flow relative to Net income. 16) Dividends paid and Shares repurchased. 17) At year end, excluding 
dilution and net of treasury shares.
Multi-Year Summary
34

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More Lives Saved More Life Lived
Each year , Autoliv’s products save 
approximately 40,000 lives.